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NDR 2014: CPF members can make lump sum withdrawals after they retire

CPF members queueing at CPF Inquiry Counters at the CPF Building. Central Provident Fund (CPF) members will soon have the option of making lump sum withdrawals from their CPF accounts after they retire, said Prime Minister Lee Hsien Loong on Sunday.

SINGAPORE - Central Provident Fund (CPF) members will soon have the option of making lump sum withdrawals from their CPF accounts after they retire, said Prime Minister Lee Hsien Loong in his National Day Rally speech on Sunday.

On what purpose CPF funds should take, Mr Lee said its core purpose should still be providing a steady stream of income in old age.

In addition to monthly payouts, he acknowledged that some members may want to make lump sum withdrawals as they may need money to do things that they have long wanted to, such as go on a journey or a haj, fulfil a lifetime dream, or attend to family emergencies.

Mr Lee said the government will give people the option to make lump sum withdrawals from their CPF when they need to, but subject to limits. A possible cap could be 20 per cent of total CPF savings. Members can also only make such withdrawals during their retirement, that is at age 65 and beyond.

But he also warned that making lump sum withdrawals will mean less in the CPF account, and monthly payouts will be accordingly smaller.

He added that the Ministry of Manpower (MOM) has worked out some possibilities, with an advisory panel to study how to work flexibility into the CPF scheme. MOM will announce details of the panel soon.

A new Silver Support scheme will be introduced for low-income Singaporeans. It will give basic payout each year, from 65. #ndrsg